HOSPITAL ADMINISTRATION COSTS ARE INCREASING “ALARMINGLY”

Gisborne Herald, Volume LXXV, Issue 22622, 27 April 1948, Page 4

HOSPITAL ADMINISTRATION COSTS ARE INCREASING “ALARMINGLY”

UNCONTROLLED RISES

After little more than an hour’s discussion of details, and the hearing of explanations by the managing-secretary, the Cook Hospital Board yesterday adopted without amendment its estimates for 19-17-48, providing for a total expenditure of £211,462, with total cash requirements of £188,098.

“In the past I have been rather critical of the time allowed for members to consider the estimates and on this occasion the time is very limited again,’’ stated the chairman. Mr. J. B. Williams. He pointed out that the late announcement of the new scale of salaries for nurses had delayed nroduction of the final figures. The cost of hospital administration was increasing alarmingly, added Mr. Williams. The trend was the same in all hospital districts. He had gone carefully into every item in the estimates and he could assure the board that there was no extravagance represented there Adoption of the estimates was seconded by Mr. H. H. Dods. Mr. H. H. Barker felt that the board should emphasise the fact that it no longer had any responsibility for the rising costs of wages and supplies. The costs of wages and salaries had. risen 150 per cent, since the introduction of stabilisation in 1942. The board was helpless in the face of a situation which simply meant that higher and higher costs had to he borne by taxation, largely from the wages of the workers. Estimates Carefully Framed Mr. H. H. Dods supported Mr. Barker’s comments. Main factors increasing the board's requirements from year to year were not under .the board’s control, he said. In reply to Mr. A. M. Traflord, the chairman said that there need be no fear that the board could not keep within its estimates unless of course, there was an unexpected rise as in the case of wages. He had full confidence in the estimates submitted by Mr. C. A. Harries, managing secretary, who had always been amazingly accurate in forecasting the needs of the board. After some discussion, during which the chairman explained that an item of over .€3OOO in respect of the capital cost of Pukeora Sanitorium was the hoard's share of an accumulated deficit of £19,000, which the Health De-

partment had decided to liquidate this year, the estimates were adopted on the motion of Mr. Barker, who pointed out that but for last year’s amendment to the Hospitals Act the local bodies would have been levied for approximately three times the levies actually made this year. He added that a rise in valuations of the respective local body areas—which seemed likely—the obligation of contributing bodies would increase accordingly. The increases shown in the board’s estimates merely reflected what was happening in the average home, with costs rising under Ihe influence of factors ciuite outside the control of the householder. Major Maintenance Expenditure Maintenance receipts estimated for the current year totalled £71.984, almost all the revenue being by way of payments from the social security fund. The estimate for 1947-48 was £69,101, and the actual receipts for that year were £74,235. Maintenance expenditure was shown in the estimates, with the related figures for last year as under: Cook Hospital.— Estimated 1947-48, £105,423: actual, 1947-48, £116,167; estimated for 1948-49, £ 134,059Conk Maternity Hospital.— £7436, £7782, £9386. Lister Maternity Hospital.— £5438, £6668, £B7B-6. St. Helens Hospital.—£2Bß7, £3llß, £7572. Tn'.aga Bay Hospital.—£l26o, £1230, £1478. Memorial Home.—£939s, £10,127, £1 1.303. District Nursing Services. — £3828, £3873, £sllO. The principal requirements under other headings included the Pukeora Sanatorium. £3238 (no provision last year); interest, £3948 (£4189 last year); administration, £7449 (£7185 last year). Deficit from Previous Year £9832 The total of maintenance requirements was £201,030, and provision was also made for meeting a deficit of £9832 carried forward last year, bringing the aggregate to £211,462. A special report was submitted by the managing-secretary on the effect of the new salary scale for nurses, which the Cabinet had asked hospital boards to make effective as from October 1, 1947. To comply with the request, provision had been made in the estimates for 1949-49 as follows: Cock Hospital. .68891: maternity services, £11.429. These figures included overtime rates as from April 1. 1948 but 1o carry overtime back to October, 1947, the board would require a further £IOBO, which was not provided for in the estimateThe board, on the motion of the chairman, recorded its appreciation of (he excellent manner in which the estimates had been submitted by the managing-secretary and his staff. “It is a sorry story, but it has been presented with the greatest possible accuracy and detail.” said Mr. Williams.